Obama-era economist slams Trump tariffs: 'Who do you think is going to pay for all the foreign tariffs that are being imposed in retaliation?'

Jason Furmana key figure in the 44th US president Barack ObamaThe Trump administration posed questions to X about the logic behind the tariffs.

What happened:The query arises in response to the former president Donald TrumpTrump's recent promise to impose tariffs of up to 20% on all imports and up to 60% on Chinese products if he is re-elected.

Furman's comments highlight the potential economic repercussions of such tariffs and question who ultimately bears the cost of retaliatory measures by other countries.

Furman said: “Suppose you believe that tariffs are paid entirely by foreigners. Then who do you think is going to pay all the foreign tariffs that are imposed in retaliation for U.S. tariffs?”

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Why is it important?Furman's comments come amid ongoing debates over the economic impact of tariffs. In July, Furman suggested that current economic conditions warranted a less restrictive policy, citing declining inflation and rising unemployment. He stressed that economic policy should be adjusted accordingly.

During a recent presidential debate, Vice President Kamala Harris Trump criticized Trump's tariff policy, calling it a “Trump sales tax” that would impose a 20% tax on everyday goods, affecting middle-class families. Trump defended his plans, proposing additional tariffs of 60% to 100% on China, with the aim of recovering costs from other countries.

Experts have also warned that Trump's proposal to impose dollar dominance in global trade through tariffs could lead to economic disruption and potentially weaken the US currency. Ulrich Leuchtmann of Commerzbank AG He said such a move could cause “massive disruption” to the global economic system.

Trump has hinted that he will use the International Emergency Economic Powers Act (IEEPA) to control economic transactions following the emergency declaration. This could allow him to phase out imports of essential goods from China over a four-year period, significantly affecting the $3 trillion worth of goods imported annually.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote